Economy and Business
6 Key Concepts
Scarcity
The problem of have limited resources, such as man-made or natural resources, such as Water, Electricity, soil, sugar etc.
CELL
Capital
Entrepreneurship
Land
Labour
Manufacturing equipment such as machinery or tools for a certain job
Organisations improving and making businesses bigger and better
resources that can be found on land such as coal, water, iron and many more. These are used to make equipment and essential ingredients for living
Everyday people that work. They work for businesses who supple goods and services for consumers and that is how a company remains successful.
Making Choices
Making choices is when consumers or producers pick a choice that will help them out and make them more successful. Consumers make choices to buy goods and services for the lowest price available to save their money for further investments into businesses
Choices FEBL
Financial Choices
picking goods and services for a lower price for the consumer to remain a comfortable balance with money
Employment
What career path to follow
Business Decisions
What or Where to produce goods or services
Legal action
whether consumers decide to take legal actions over faulty products
Specialisation and Trade
Trade
Importing goods that businesses or countries cannot provide them self. They buy these goods from foreign countries which allows the global economy to become stronger
Specialisation
Businesses or countries that focus on the production of a particular good. This can occur if they are in the right region or for production of the good or they have experienced people that specialise with that particular good.
Interdependence
The way we rely on others to satisfy our needs and wants.
Allocation and Market
Allocation
The way we distribute our resources among producers
Market
The exchange of goods among buyers and sellers
Economic Performance and Living Standards
How we measure how economically strong a country is
Gross Domestic Product
total value of goods and services produced in country in a year
Inflation
General increase in prices because of goods and services
Unemployment Rate
Percentage of people who are unemployed
5 Economic System
Traditional or Subsistence Economy
Producers are self-sufficient which means they produce enough to survive mainly for them or their family.
Market Capitalist
When producers exchange goods and services with consumers in return for money
Planned Capitalist
when people own productive resources but the government determines what happens with the outcome or product
Market Socialist Economy
the government owns the productive resources while individuals decide the production or outcome of these
Planned Socialist Economy
The government decide everything for how to produce, what to produce and whom to produce for
Importing, Exporting and Outsourcing
Importing
Exporting
Outsourcing
Outsourcing is when a country makes the materials in your country and ship it out to other countries from them to make it for you, for cheaper
Importing is when a country buys goods and services from another country for exchange of money
Exporting is when a country gives another country goods and services for exchange of money
Scams
Investment / Online Scams
Emotional Scams
Charity
Psychic
Romance
When a person online makes people fall in love with them. these people use model photos for people to fall in love with them. When a victim is in love with them, the scammer will ask for money, making it seem sad and something is wrong. These victims will automatically send money and then wont see a response
Scammers asking for donations saying a specific charity needs help and many children will die if you dont support. The empathetic people such as older people will donate and hear nothing about it
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Phishing Emails
Phishing Emails are when a scam organization sends out hundreds of thousands of emails saying you have won the lottery. It is fake and they ask for your bank account details to log the money into your account. They will take you account details and buy whatever they want with it.
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Skimmer
When Scammers place a skimmer that reads information of peoples credit card when they take out money at a ATM. This skimmer is them pulled out an put onto a machine which can turn the info into a real life usable credit card.
Economic Systems
Capitalist
A person who uses their wealth to invest in trade and industry for profit
Socialist
Community own the means of production
Capital
manufacturing equipment for use of a certain job
Opportunity
More variety, choices and chances / possibility
Egalitarianism
that all people are equal and deserve equal rights
Enterprise
Ideas/ Organisation
inequality
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